Elmhirst v. Commissioner
United States Board of Tax Appeals
1. A corporation exchanged its capital stock for securities. Held, that for purposes of computing earnings or profits to ascertain amounts available for distribution as dividends, the cost to the corporation, i.e., fair market value of the securities at date of exchange, should be taken as base, and not cost to the transferor of the securities to the corporation.
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1. A corporation exchanged its capital stock for securities. Held, that for purposes of computing earnings or profits to ascertain amounts available for distribution as dividends, the cost to the corporation, i.e., fair market value of the securities at date of exchange, should be taken as base, and not cost to the transferor of the securities to the corporation. W. S. Farish & Co.,38 B.T.A. 150; affd., 104 Fed.(2d) 833; F. J. Young Corporation,35 B.T.A. 860; affd., 103 Fed.(2d) 137. 2. Corporate books were kept on an accrual basis, and closed only yearly, at the end of each year. A closing…
1Opinion of the Court
DOROTHY WHITNEY ELMHIRST, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Elmhirst v. Commissioner
Docket Nos. 85040, 85880, 95298.
United States Board of Tax Appeals
41 B.T.A. 348; 1940 BTA LEXIS 1196;
February 14, 1940, Promulgated
1. A corporation exchanged its capital stock for securities. Held, that for purposes of computing earnings or profits to ascertain amounts available for distribution as dividends, the cost to the corporation, i.e., fair market value of the securities at date of exchange, should be taken as base, and not cost to the transferor of the securities to the…
2Cases cited5 opinions
- W. S. Farish & Co. v. CommissionerUnited States Board of Tax Appeals · 1938
- F. J. Young Corp. v. CommissionerUnited States Board of Tax Appeals · 1937
- Elmhirst v. CommissionerUnited States Board of Tax Appeals · 1940
- Hormel v. CommissionerUnited States Board of Tax Appeals · 1939
- Continental Nat'l Bank & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1930